- More than 3,000 claims settled via Cybersettle saving City millions -

New York City Comptroller William C. Thompson, Jr. today announced that his office’s use of an online tool - Cybersettle - has increased opportunities to settle claims pre-litigation, resulting in claims against the City settling more quickly with reduced settlement costs.

“I am proud that New York City has taken a leadership role in being the first municipality to use internet technology to settle claims,” Thompson said. “By using Cybersettle to settle claims online, my office has been able to settle claims quickly and efficiently, thereby saving millions of taxpayer dollars.” 

Under the New York City Charter, the Office of the New York City Comptroller is responsible for settling and adjusting claims for and against the City. In an average year, 24,000 claims are filed against the City.

In February 2004, the Comptroller’s Office began a demonstration project with Cybersettle to settle personal injury and property damage claims against the City. The demonstration project was a short-term pilot exercise designed to test and evaluate the feasibility and application of an innovative product, approach, and technology not currently used by the City.

Cybersettle facilitates high-speed, confidential claim settlements by matching offers and demands and allowing parties to settle disputes instantly via a secure internet connection. Cybersettle uses a patented online, double-blind bid process for matching each party’s settlement offers and demands.

Since its inception on February 23, 2004 through June 30, 2008, 3,047 claims have been settled using Cybersettle for a total of $33,440,983. Cybersettle settlements average $10,975 and take an average of six to 12 months to resolve.

By comparison, the average settlement for similar claims that go into litigation is $27,869 and take an average of four years to resolve. By using Cybersettle to settle claims pre-litigation, the average settlement amount has been reduced by $18,774 per claim, representing an estimated savings of $57,204,378 in settlement costs over the four years that Cybersettle has been in use.

In addition to the savings benefit, the Comptroller’s Office has been able to expand its operations to 24 hours a day, seven days a week using Cybersettle without incurring additional costs since attorneys and adjusters can settle cases after regular office hours.

The number of claims that have settled using Cybersettle have more than quadrupled since its introduction. In 2004, 287 claims were settled. This year, 1,414 claims have been settled through June 30.  Claims settled with Cybersettle include accidents involving city vehicles, sidewalk trip and fall cases, and incidents at schools, among others.

“When it comes to claims, the earlier a claim is settled, the less costly the outcome both in terms of the actual settlement, as well as claims handling and litigation expenses,” Thompson said. “Cybersettle has proven to be an effective tool in helping keep claim costs down for the City.”

When using Cybersettle, the Comptroller’s claim adjusters identify cases that are either ready to pursue settlement or need additional information to initiate settlement negotiations. Claim adjusters then input claims into the Cybersettle system. Cybersettle notifies the plaintiff’s attorneys of the City’s intention to negotiate and requests pertinent documentation.

Claims adjusters enter offers - which cannot be seen by the plaintiffs - into Cybersettle.  Plaintiff’s attorneys respond with corresponding demands - which cannot be viewed by the City - through Cybersettle. If a demand and offer overlap, a settlement is automatically achieved and Cybersettle informs the parties. If the claim does not settle, parties can continue by making additional offers or demands. Claims entered into Cybersettle can never settle for more than the Comptroller’s Office’s highest offer.

In 2007, Government Technology Magazine and the NYC Department of Information Technology & Telecommunications selected the Comptroller’s Office Cybersettle Project as the Most Innovative Use of Technology in New York City. In 2005, Business Week selected the Comptroller’s Office use of Cybersettle as one of “Top 50 Web Applications of the Year.”

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